International Paper Company Reports Increased Net Earnings of $557 Million for Fiscal Year 2024

International Paper Company reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net earnings attributable to shareholders reaching $557 million, or $1.57 per diluted share, compared to $288 million, or $0.82 per diluted share, in 2023. The company's total net sales for 2024 were approximately $18.6 billion, a decrease of 2% from the previous year, primarily due to lower sales volumes, although this was partially offset by higher sales prices. The cost of products sold also decreased by 2%, reflecting lower sales and reduced maintenance outage expenses.

The company undertook several strategic initiatives during the year, including the implementation of an 80/20 strategic approach aimed at driving transformational performance. This involved restructuring efforts that included the closure of five box plants and the Georgetown, South Carolina mill, which are expected to yield annual cost savings of approximately $110 million. Additionally, International Paper announced a business combination with DS Smith Plc, which was completed on January 31, 2025, creating a global leader in sustainable packaging solutions. This acquisition is anticipated to enhance the company's operational capabilities and expand its market presence.

Operationally, International Paper employed approximately 37,000 employees as of December 31, 2024, with nearly 31,000 based in the United States. The company has focused on improving its workforce alignment and reducing complexity, which included a corporate overhead restructuring plan that resulted in a reduction of about 650 employees. The company also reported that it engaged in 2.7 million learning activities through its training platform, emphasizing its commitment to employee development.

Looking ahead, International Paper expects to continue its focus on cost reduction and operational efficiency, with capital spending projected at approximately $1.2 billion for 2025. The company anticipates that the benefits from its restructuring initiatives and the completion of its commercial contract restructuring will lead to improved earnings in the upcoming year. The company remains optimistic about its growth trajectory, particularly following the integration of DS Smith, which is expected to provide significant synergies and enhance its competitive position in the market.